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Cost of EFTPOS Machine

EFTPOS (Electronic Funds Transfer at Point Of Sale) machines have made payment transactions more secure, fast and simple. It is a must-have for today’s Australian businesses. Offering quick and reliable cashless payments will enhance customers’ experiences and ensure payments are made and received securely. 

With this in mind, what are the EFTPOS machine costs and associated fees? We have summarised below the costs, hidden fees to look out for, and the best EFTPOS machine solutions for small to large businesses.

How Much Does an EFTPOS Machine Cost?

The costs of EFTPOS terminals will vary depending on the size of your business, transactions and sales volumes and the number of terminals required.

At Smartpay, you can keep every dollar of your sale with our Zero Cost™ EFTPOS solution.

Here is a brief overview of EFTPOS costs you might encounter: 

Zero Cost™
Monthly Fees
$250-$300 p/m
Terminal Rental
$29.95 p/m
Add on features

*Merchants transacting more than $10,000 per month on card transactions.

The exact costs of setting up and using your EFTPOS machine can be overwhelming. However, below we have broken down some direct and indirect costs you can expect to pay when using an EFTPOS machine.

1. Merchant Service Fee (EFTPOS Transaction Fee)

In simple terms, a merchant service fee is a fee you pay to your bank or provider to process your transaction payments. This fee is calculated as a percentage (or fixed fee) of every transaction where a customer swipes, inserts, or taps their card at your terminal. Find out more about merchant service fees.

As a business owner, maintaining low operating expenses can help tremendously. With Smartpay’s Zero Cost EFTPOS solution, we provide a way for businesses to pass on transaction fees associated with card payments to their customers, helping them to reduce their operating expenses. 

Additional information on card surcharges by the Australian Competition & Consumer Commission (ACCC) can be found here.

2. Additional Costs

Businesses may occasionally be subject to additional fees depending on the chosen EFTPOS providers and how payments are processed. Understanding why and how these costs may arise will help as a negotiating factor when deciding between providers.

Businesses are encouraged to go through the Reserve Bank of Australia (RBA) Card Payments Regulation Guide.

3. Payment Processing Fees

Depending on your business needs, additional payment types, such as phone payments or transactions with specific cards like AMEX, can be accepted. However, it should be noted that additional processing fees can be incurred when accepting these forms of payment.

4. Data or Internet Plan

Depending on whether or not there is any existing business internet plan being used, indirect costs may increase, as utilising an EFTPOS machine requires data. 

To avoid rising expenses, it may be a good time to negotiate with a network provider for a plan that caters to your internet requirements. Alternatively, you can choose an EFTPOS provider with a built-in SIM card, meaning you won’t need to rely on your internet to process transactions.

5. Point of Sale (POS)

For some businesses, a POS system is an essential tool to help your business accept payments and keep track of sales. Common elements of a POS system include a touchscreen display and computer, card reader, cash register, barcode scanner and receipt printer. These often incur a monthly subscription fee depending on the selected plan. 

In saying this, businesses do not need to subscribe to a point-of-sale provider and can process transactions on their EFTPOS terminal in a “standalone” setup, a popular option for most businesses.

6. Business Transaction Bank Account Fees

A business bank account is also essential to running a business and ensures that the funds received from EFTPOS machines are made available to you securely. Depending on your business needs, all business bank providers have similar offers, such as no-fee, low-fee or premium-fee accounts. If the business is new, choose the no or low fee option at the beginning and upgrade in the future if required.

How Businesses Can Save With EFTPOS Surcharging

As a scalable payment solution, surcharging allows both large and growing businesses to save on merchant fees significantly. Instead of incurring additional costs as customer card payments rise, your business will benefit from unlimited fee-free transactions and no terminal rental.

Separately, large businesses will sometimes have the option to pay a lower processing fee due to their higher transactional volumes. These options are often calculated at a lower percentage charged per transaction or a lower simple fixed rate charged on a monthly basis if the transaction volume does not fluctuate immensely.

EFTPOS Machine: Rent or Purchase?

Another factor that could influence the cost of your EFTPOS machine is if you’re renting or purchasing. Before making any decisions, you should consider the following factors: 

  • Lock-in contracts: Does your provider have a lock-in contract or minimum term?
  • Support services: Is there inclusive 24/7 support, or are additional fees applicable?
  • Fees and charges:  Do you want to pay merchant fees, or opt for a Zero Cost solution?
  • Receipt rolls: What are the costs associated with paper rolls?

Renting an EFTPOS machine is a great option for businesses that need to accept card and contactless payments. This is because it avoids having to pay an upfront cost for an EFTPOS terminal and offers great flexibility in the choice of provider, as well as coverage for any accidential damage or issues with your terminal, that is replaced free of charge.

Although many providers offer “no lock-in contracts”, purchasing a piece of EFTPOS hardware can make businesses hesitant to shop around for a better deal, as they’ve incurred a large upfront cost. At Smartpay, we believe in no lock-in contracts or upfront fees.

While purchasing an EFTPOS machine up-front may seem appealing to eliminate ongoing costs in your business, with Smartpay you won’t ever incur any rental costs if you transact more than $10,000 per month on card transactions. This is one of the many benefits that our thousands of merchants enjoy on our Zero Cost™ EFTPOS plan.

How to Choose the Right EFTPOS Machine

In addition to the above information, the summary below includes key components your business should consider when it is time to rent or buy an EFTPOS machine:

  • Types of EFTPOS terminals and associated hardware
  • Payment processing fees and available plans to reduce costs
  • Ability to accept different types of card and contactless payments
  • Flexible agreements or lock-in contracts
  • POS integration availabilities (if needed)
  • Ongoing technical and sales support
  • Transaction disputes options and support

Understanding what EFTPOS machine features suit your business needs is another way to help you find the best possible solution. 

Such features can include:

  • Portable EFTPOS terminals: A portable EFTPOS machine that functions similarly to countertop terminals benefits small businesses. Being able to accept card payments from customers at any time and anywhere is great for delivery services, market stalls, pop-up stalls and restaurants.
  • Integrated EFTPOS machines: These are connected to POS systems via the internet instead of cables. This option will streamline sales reporting and reconciliations for larger businesses, such as supermarkets with high daily transaction volumes.
  • Automated Surcharging: The main benefit of enabling this feature is eliminating monthly merchant fees. This is a part of our Zero Cost™ EFTPOS solution, which is trusted by thousands of businesses across Australia.

The Cheapest EFTPOS Machines for Small Businesses in Australia

Finding the most affordable and reliable EFTPOS solution is critical for reducing overheads for small businesses. That’s why Smartpay offers fantastic cost-effective EFTPOS solutions for small businesses, helping you save on expenses that can be invested elsewhere. 

Learn more about Smartpay’s EFTPOS for small businesses here.

Want to know more about surcharging?

If you’re keen to learn more about how surcharging on EFTPOS works, or what you could save, find out more about SmartCharge. To talk about how surcharging could work for your business get in touch with the team at Smartpay.